The following information is available for October for Norton Company. A fire destroyed Norton's October 31 inventory, leaving undamaged inventory with a cost of $18,000. Using the gross profit method, the estimated ending inventory destroyed by fire is
A) $102,000.
B) $462,000.
C) $480,000.
D) $600,000.

Question

The following information is available for October for Norton Company.  A fire destroyed Norton's October 31 inventory, leaving undamaged inventory with a cost of $18,000. Using the gross profit method, the estimated ending inventory destroyed by fire is
A) $102,000. 
B) $462,000. 
C) $480,000. 
D) $600,000.

Quizplus · Accepted Answer

The Answer of The following information is available for October for Norton Company.  A fire destroyed Norton's October 31 inventory, leaving undamaged inventory with a cost of $18,000. Using the gross profit method, the estimated ending inventory destroyed by fire is
A) $102,000. 
B) $462,000. 
C) $480,000. 
D) $600,000.

The Following Information Is Available for October for Norton Company